XRP price remains under pressure despite a record count of funded wallets on the XRP Ledger, with a potential reversal pattern pointing toward $2 — although several resistance levels still stand between the token and that target.

On-chain research firm Santiment reported that non-empty wallets on the XRP Ledger reached 8.24 million, alongside a sharp increase in newly created addresses. The figures arrived after several weeks of selling that left XRP more than 11% lower in October, underscoring a divergence between network adoption and recent market performance.

Early Test Awaits at $1.40

XRP traded roughly between $1.31 and $1.36 in recent sessions. According to Santiment's analysis shared on X, $1.40 is the first level buyers must reclaim before the market can consider another move toward $1.50.

The research firm added that daily wallet creation would need to stay near 4,000 or higher alongside any sustained price recovery. Even then, a break above $1.40 alone would not confirm the longer-term chart pattern.

Recent fund activity adds another layer of concern. The end of a 13-week streak of XRP ETF inflows was followed by roughly $2.3 million in withdrawals during the week ending October 16. Flows into crypto exchange-traded products are widely tracked as a gauge of institutional participation, which is why the streak's end has drawn attention from market observers.

Record Wallet Growth Contrasts With Selling

Santiment recorded 4,772 new wallets in a single day, the fifth-largest daily increase since March. Total non-empty addresses reached their highest recorded level even as the token's price declined.

The firm cautioned that these addresses do not represent 8.24 million separate investors. Individuals and exchanges can control multiple wallets, and opening an address does not necessarily mean the owner bought XRP immediately.

Meanwhile, large XRP deposits to exchanges have raised questions about selling pressure, since coins held on trading platforms are available for near-immediate trading. Exchanges received 6.05 billion XRP over the past 30 days, although transfers alone cannot establish whether holders actually sold their tokens.

Chart Pattern Keeps $2 Target in View

Beyond the on-chain data, the weekly chart shows a possible inverse head and shoulders formation. A pattern of this type — three troughs with the middle one the deepest — is regarded in technical analysis as a potential reversal signal, but only once price closes above its neckline. XRP reached $1.2795 in April, dropped to $0.9874 in August, and later recovered from a low of $1.2550. The pattern remains unconfirmed for now.

To validate it, XRP price must clear a resistance area between $1.5093 and $1.6667, a zone where sellers have repeatedly blocked recovery attempts since February. A sustained move above the pattern's neckline could put the $2.0084 Fibonacci level in focus. Until that happens, the bullish setup remains a possibility rather than a confirmed breakout.

Additional pressure has emerged in the derivatives market. A recent report on XRP long-position liquidations described more than $300 million in positions closed within 24 hours, losses that reflect recent market weakness rather than a confirmed change in the broader trend. Liquidations occur when exchanges automatically close leveraged positions that fall short of margin requirements, so the figure offers a measure of how much leveraged exposure was unwound during the pullback. A decline below $1.30 could also weaken the near-term recovery outlook.

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This article is based on reporting originally published by CoinCentral.